Financial Services Insurance
Insurance for Financial Services Firms
Nothing is as simple as it used to be. Court decisions and new regulations are rendering financial services firms increasingly vulnerable to lawsuits and tighter regulatory scrutiny. Even the most well-managed and cautious firms are finding themselves exposed.
In today’s complicated legal and regulatory environment, financial companies have special liability exposures that may not be covered by their existing general liability insurance policy. Professional liability lawsuits can be triggered by not meeting client expectations, misstating results or even violating federal regulations. Many different laws continue to create significant accountability for advisers along these lines. The proliferation of federal and state laws governing employment practices, combined with evolving case law, also makes claims by employees more common and more costly. Even routine business decisions can lead to liability for a firm and its management. A wide range of actions can be brought by any number of parties—not only by clients, but also by shareholders, employees and regulators. The financial well-being of a firm and its management is at risk.
In the past, a financial adviser wanting to insure such diverse risks had to purchase several different policies and hope that a claim would not fall into any potential gaps in coverage.
The Swingle Collins & Associates team has a strong understanding of exactly what financial services firms need to protect their company, and offers a variety of financial services insurance to assist. Call us, if we can be of assistance to you.
Registered Investment Advisers
Private fund managers
Private Equity Firms
Credit card issuers
Sub prime lenders
Leveraged Buy-out Firms
Mortgage Brokers & Bankers
Money Center Banks
Errors and Omissions Liability
Directors and Officers Liability
Employment Practices Liability
Outside Directorship Liability
One integrated policy, helping to minimize the gaps in coverage that can exist among separate policies.
A definition of claim that speaks to the most significant professional liability exposures of an investment
Coverage for defense costs, judgments, and settlements for covered claims.
Claim includes formal regulatory investigations into a firm’s activities.
A policy that is noncancelable by carrier, except for nonpayment of premium.
No coinsurance requirement.
No regulatory exclusion.
Plus these policy features:
As long as a claim has an active, covered allegation, the duty to defend and pay 100% of defense costs for all allegations.
The policy responds to filed lawsuits, as well as to written demands, formal regulatory investigations, and criminal or administrative proceedings.
One simplified application for all coverages.
Claims are handled by field claim professionals with expertise in each coverage area.
Branch offices across the United States provide local claims presence, as well as coordination of claims handling across legal jurisdictions.
Management Liability Insurance
Outside Directorship Liability Insurance
Management Indemnification Insurance
Claims-made form that includes:
Coverage for suits brought by portfolio companies against the venture capital or private equity firm or its employees or management
Coverage for securities actions
Controlling shareholder liability coverage
Coverage for advisory board members of a private fund
No exclusions for tortuous interference, intellectual property or antitrust
Automatic coverage for newly created private funds
Advancement of defense costs
No prior-acts exclusion